Common Questions about Bankruptcy

Common Questions about BankruptcyIf you’re not familiar with how bankruptcy works its common to have
questions about the process. If you have been struggling to pay your debt
and continue to fall further behind, bankruptcy is an option worth researching.

The following questions are often asked by those who are considering bankruptcy
as a possible solution:

Q: What is bankruptcy?

A: A federal court process that allows consumers and businesses to resolve
outstanding debt obligations by either eliminating debt or restructuring
debt with bankruptcy court protection.

Q: Does bankruptcy wipe out all debts?

A: While the bankruptcy process has the ability to wipe out certain kinds
of debt, there are debts that will not qualify for discharge.

Q: Chapter 7 verses Chapter 13: What’s the difference?

A:
Chapter 7 wipes out or discharges debts and
Chapter 13 reorganizes debt with a repayment plan.

Q: Which chapter lets me keep my property?

A: Each chapter has specific exemptions and rules that allow you, in many
cases, to keep your property. Chapter 13 allows you to keep your property
as long as payments are made accordingly. If you have nonexempt assets
in Chapter 7 they can be liquidated and used to pay outstanding creditors.
With Chapter 7, if you don’t have assets to liquidate, if your debts
qualify, they can be discharged.

Q: Am I free to choose which chapter to file?

A: Each chapter has certain qualifications that must be met in order to
file so it will depend on your unique financial situation. Getting a detailed
idea of what chapter you should file can be discussed with a qualified
bankruptcy attorney.

By | 2017-12-13T02:43:43+00:00 February 6th, 2012|Bankruptcy|Comments Off on Common Questions about Bankruptcy